Commenting on the latest Greek bailout talks, Prof Philip Booth, Editorial Director at the Institute of Economic Affairs, said:
“Even if Greece reaches agreement regarding its borrowing, it is highly likely to default beyond the agreements that have already been reached with creditors.
“Greece's position inside the euro is both unstable, and destabilising for the eurozone more generally. EU governments are merely trying to put off the exit of Greece from the eurozone for which they are ill-prepared.
“As such, the discussions regarding labour market reforms in Greece are less important for the eurozone and IMF than they are for Greece itself. If Greece is unable to reform its economy then, whether inside or outside the eurozone, the result will be stagnation and impoverishment for a generation.”
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Notes to editors
The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.
The IEA is a registered educational charity and independent of all political parties.